Kenneth Rijock

Kenneth Rijock

Thursday, November 17, 2011

WATCH FOR FUNDS MOVEMENT IN RESPONSE TO HAMAS TAXING ORDER

Reports have been received today that a Hamas court in the Palestinian Territory of Gaza has levied multi-million dollar taxes upon the Bank of Palestine and the Palestine Islamic bank. Apparently, these West Bank-based financial institutions have been paying taxes solely to the Palestinian Authority, and not Hamas in Gaza.

Whilst we would not consider such actions are relevant to compliance officers, it might be prudent to raise your level of awareness for any unusual funds transfers from the Middle East, which could possibly represent a portion of these taxes upon these, collected but diverted for either corrupt purposes, or being moved to a more secure (and stable) environment.

Alternatively, there could also be a knee-jerk reaction from either bank, moving funds ahead of Hamas' confiscation orders.

In either case, remember well the Western sanctions existing against Hamas, and the problems which might arise with charges of Providing Financial Support to Terrorism.  

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.